Russell Brennan Keane

Loan Book Reviews / Adequacy of Bad Debt Provisions

 

We have completed independent loan book reviews and implemented tried and tested bad debt provisioning policies for Credit Unions.

  • The Regulator has stated on numerous occasions that the Res. 49 provision is the absolute minimum provision for defaulting loans.

  • The Bad Debt Provision should be calculated at the very minimum on a quarterly basis using a consistently applied policy with focus on rescheduled loans, top-up loans, single lump-sum repayment loans, bullet type loans, interest only loans and connected party loans.